Podcast Summary
Fear of Scaling Up: Small business owners should embrace unscalable solutions as opportunities for growth and improvement, rather than fearing them due to lack of resources or context in the early stages. As the business grows, resources and time become available to adapt and improve upon these solutions, making them more efficient and effective.
Many small business owners are leaving significant amounts of money on the table by not fully leveraging their biggest competitive advantage due to a fear of scaling up. This fear often stems from a lack of resources and context in the early stages of business, making unscalable solutions seem insurmountable. However, as the business grows, there are often ways to adapt and improve upon these unscalable solutions to make them more efficient and effective. For example, handwritten cards for customer engagement may seem unscalable at first, but with the right resources and time, they can still provide a personal touch that builds customer loyalty. It's essential to remember that the heavy lifting and personal touch required in the beginning can lead to significant rewards down the line. As the business grows, it becomes possible to delegate and automate some tasks, making scalability a more achievable goal. So, instead of shying away from unscalable solutions, embrace them as opportunities for growth and improvement.
Customer Engagement: Engage with customers, even if sales are initially unscalable, to learn valuable insights and improve the product. Focus on onboarding every customer, even those paying a low monthly fee, to increase their likelihood of staying longer and providing valuable feedback.
When starting a business, especially if it's in a community like education or fitness, it's essential to engage with customers, even if the sales are initially unscalable. The speaker emphasizes that it's a mistake to believe that everything must be scalable right away. Instead, focus on learning from customers by talking to them and asking the right questions. This will help identify the most valuable features, improve the product, and inform marketing efforts. Even if it means making $0 or very little money during this process, it's a worthwhile investment for the future growth of the business. By onboarding every customer, even those paying a low monthly fee, they are more likely to stay longer, refer others, and provide valuable feedback. Once the business has grown and the owner can handle more calls, they can scale up to semi-private sessions, increasing output while still delivering a personalized experience. The key is to be busy and making money, not busy and broke.
Learning over earnings in early entrepreneurship: In the beginning, focus on learning from customers to improve sales skills and understand their needs, even if earnings are low. Embrace challenges and see scaling as a continuous journey of education.
In the beginning stages of entrepreneurship, it's important to prioritize learning over earnings. The author emphasizes the value of directly engaging with customers and learning from their feedback to improve sales skills and understand their needs. He advocates for starting with one-on-one sales interactions, then scaling up to group onboarding and eventually training others to do the same. The author's experience shows that even if the initial earnings are low, the knowledge gained is invaluable for future growth. He encourages entrepreneurs to see the process as a continuous journey of education and to embrace the challenges that come with scaling, rather than being discouraged by them. The author's perspective is that the inability to see how to scale is not a fundamental limitation, but rather a lack of knowledge and experience that can be acquired through dedication and hard work.
Perception of Unscalability: The perception of unscalability can stem from skill deficiencies and can be addressed with the right resources and perspective. What seems unscalable today may be scalable with growth and investment.
The perception of unscalability in business often stems from a skill deficiency rather than an inherent limitation. Every business incurs debt, and the type of debt incurred depends on available resources. Management debt, resulting from a lack of skilled personnel due to financial constraints, can make a business seem unscalable as the business owner is forced to handle multiple roles. However, it's essential to remember that what seems unscalable in the present may be scalable with the right resources and context. Moreover, focusing on the end goal and ignoring the current constraints can lead to misguided advice. It's crucial to understand the unique challenges faced by businesses at various stages of growth and offer contextually relevant solutions. For instance, personalized communication can be an effective tactic for small businesses, even if it seems unscalable at first. With time and growth, more significant investments can be made to streamline processes and increase efficiency. In essence, the key takeaway is to recognize that what seems unscalable today may be scalable with the right resources, skills, and perspective. Instead of using perceived limitations as an excuse, focus on being more efficient and effective in the early stages of growth.
Small Business Advantages: Focus on personal connections and easier-to-deliver aspects for growth in the beginning, then scale efficiently using revenue and skills gained.
When starting a business, it's essential to leverage your unique advantages as a small business and focus on efficiency in the beginning. This means handcrafting personal connections with customers through unscalable methods, such as handwritten letters, and using the revenue and skills gained to scale up efficiently. The sales to delivery continuum framework suggests that easier-to-sell products or services are often harder to fulfill, while harder-to-sell ones are easier to deliver. Therefore, it's crucial to start by focusing on the easier-to-deliver aspects of your business. By understanding and utilizing these principles, small businesses can gain a competitive edge and grow effectively.
Top-down business strategy: Starting with high-priced, done-for-you services can help establish SOPs, position as experts, and expand to lower-priced offerings, improving sales skills along the way.
Following a top-down approach in business, starting with high-ticket, done-for-you services before offering lower-priced, done-with-you or DIY options, can be more effective for branding, scaling, and revenue. This strategy allows businesses to develop Standard Operating Procedures (SOPs) for various aspects of their services, position themselves as experts with high-value clients, and eventually expand their reach to a larger customer base with lower-priced offerings. This approach also enables businesses to improve their sales skills as they move down the pyramid and cater to a larger customer base. However, it's important to note that both top-down and bottom-up strategies have their merits, and the choice between the two ultimately depends on individual business goals and preferences.
Customer connections: Spend time with customers to understand their needs and improve messaging, scale relationships, and deliver personalized solutions to build a thriving business
Building meaningful connections with customers is essential for business growth. The speaker emphasizes the importance of spending time with customers to understand their needs and improve messaging. He encourages entrepreneurs to "scale the unscalable" and focus on building relationships rather than just being busy or broke. By engaging with customers and delivering personalized solutions, businesses can thrive. Additionally, the speaker encourages sharing valuable business insights through various channels to spread knowledge and grow a community.